The current stance of the housing sector in Ukraine satisfies neither residents due to poor services, nor the state, which pays large subsidies to the sector. The needed changes are usually substituted with technical modernization, or even are narrowed down to simple tariffs increase what should, on one side, cover the cost of the services, and, on the other, should envisage resources for renovation and capital investments. However, even for successful technical modernization of the housing sector and imposing economically justified tariffs a fundamental reformation of “the rules of the game” is critical i.e. institutional reform is needed. The crucial issue of such reform is the property rights.
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